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How to Calculate Your Combined Federal and State Marginal Tax Bracket

The tax rate schedules list tax rates for Federal income tax only. It does not include state income tax. To account for "overlapping" levels of taxation (i.e., the fact that you can deduct state income tax payments on a federal tax return if you itemize deductions), to determine your combined (federal and state) income tax bracket, use the following formula:

NOTE: This calculation method only works for taxpayers who are not subject to the rules that phase-out itemized deductions for taxpayers above a certain level of adjusted gross income. Taxpayers who are subject to the phase-out rules will pay a higher combined federal and state tax rate than the above formula indicates. Consult a professional tax advisor for additional information.